Coverage Area

Published: | Updated: October 1, 2016

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Definition - What does Coverage Area mean?

Coverage area is the geographic region or location in which benefits of an insurance policy may apply and be applied for the purposes of filing a valid claim. For instance, "anywhere in the world" may be the coverage area for travel health insurance. It means that the policyholder may obtain the necessary medical treatment no matter where they are and be entitled to benefits upon meeting the conditions of the policy.

Insuranceopedia explains Coverage Area

Insured individuals should make sure they understand the coverage area of their insurance policy or risk zero coverage. For instance, with auto insurance, a policy issued in the United States may not cover incidents or accidents outside of US territory. A policyholder traveling outside the US may have to either secure supplemental insurance that expands the coverage area or purchase another policy that provides the necessary coverage.

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